Commonwealth, a Boston-based nonprofit whose goal is to improve the financial security of lower-income American, has announced a new project with the MetLife Foundation: Making Wealth Common: Extending Financial Opportunity for All.

Using a $3.4 million grant from the foundation it aims to uncover and highlight new consumer insights, and pilot practices to enable wealth creation for millions of low-income individuals and families over time.

“Workers deserve a shot at the American dream, but it can be hard for people to turn aspirations into reality - or even to keep dreaming - with nothing in the bank,” said Timothy Flacke, executive director of Commonwealth.

Timothy Flacke, executive director, Commonwealth

Courtesy Commonwealth

Most financial products and institution are focused on middle and upper income customers because they have money to save and invest. Commonwealth plans to with employers, retailers and other organizations to identify ways to help financially vulnerable people start to accumulate wealth.

“Half the country lives in financial insecurity, “ said Flacke. “Our work is to look for tools, products and public policy ideas that make it possible for bottom half to built some financial stability.”

A lot of countries have had success with prizes, prize-linked savings, but for a time that was banned in many states. Now 30 states allow it ad Commonwealth has found it effective in Michigan tests.

Walmart and Green Dot Corporation offer prizes for moving money from its MoneyCard app, a debit card, into the MoneyCard Vault savings account.

“You’re automatically entered for a chance to win! Earn one sweepstakes entry in the monthly drawing for every dollar on average you saved up in the Vault for that month. Earn up to 500 entries per month,“ the company says on the MoneyCard web site.

“Two years after Prize Savings launched, we're excited that Walmart customers have moved $2 billion through the Vault, a safe and accessible savings pocket of the Walmart MoneyCard prepaid card,” said Commonwealth, which has collaborated with Walmart and Green Dot on the program.

“The program is growing and so is the prize pool. Every dollar saved in the Vault (up to $500) now earns an entry for one of 1,000 cash prizes. There are 999 $25 prizes and a grand prize of $1,000 every month encouraging participants to hold on to their savings without any risk,” Commonwealth added.

BlackRock has announced a $50 million philanthropic commitment to fuel innovation that will allow millions of people living on low- to moderate-incomes to establish a stronger financial safety net. It is working with Commonwealth, the Center for Financial Services Innovation (CFSI) and Common Cents Lab.

“Leveraging their knowledge, networks, deep research and behavioral design capabilities, these organizations will work to expand the supply of high-quality savings options available to financially vulnerable Americans,” BlackRock said in its announcement..